Episode 5 - Examination Evolution: A Fresh Look at SEC Exam Trends and Insights

SEC exams continue to evolve, and registered investment advisors should understand where regulators are placing their attention. In this episode on SEC Exam Trends and Insights, Stark & Stark attorneys discuss themes they are seeing in examinations and deficiency letters. The conversation explores how exam priorities are communicated and why they are not an exhaustive list. The attorneys explain that regulators may focus on additional issues depending on firm size, activities, and risk profile. Areas discussed include cybersecurity policies, incident response planning under Regulation S‑P, and the growing emphasis on written documentation. Key topics covered include: ✔️ Incident response programs and how they differ from cybersecurity policies ✔️ Regulation S‑ID and identity theft prevention expectations ✔️ Annual compliance reviews and risk assessments ✔️ SEC filing issues, including Form 13F, Form 13H, and Form N‑PX ✔️ Compliance considerations when using third‑party technology and AI tools The episode also highlights exam scrutiny around recordkeeping, internal testing, and whether firms can clearly explain their compliance processes. The discussion is particularly relevant for investment advisers managing regulatory obligations in a national environment. This episode features insights from Jeffrey Lang, Esq., Stephen Galletto, Esq., and Mittal Patel. For information purposes only; not legal advice. Contact the investment management & securities compliance attorneys for more information. This podcast provides general legal information and commentary only. It is not intended as legal advice, nor does it create an attorney-client relationship. For more information about Stark & Stark’s services, please visit www.stark-stark.com.